• Air of Optimism
• Green Card Bureau of Iran & Compulsory Insurance Bureau of Azerbaijan
• TPL & Drivers’ Accident Online Info
• 22nd National 8th Int’l Conference on Insurance & Development
• Bonding & Rebonding
• Engineering Insurance Seminar
• IRR 80.8 Thousand Bln Paid Losses in 8 Months
Air of Optimism: Europe to Renew Cooperation
Early February 2016, in a meeting with the attendance of the President of Bimeh Markazi Iran (Central Insurance of IR Iran) and the Reinsurance Vice President, top executives of three European companies, i.e. SCOR reinsurance company, United Insurance Brokers (UIB), and NASCO reinsurance brokers, expressed their appreciation for warm reception, stating that it shall be a starting point in the new era of global cooperation and mutual support in different fields, as regards Iran’s post-sanction economy.
Having welcomed the guests, Dr. Mohammad Ebrahim Amin drew their attention to the latest changes in the Iranian market and promising news regarding laws and regulations that are anticipated to be approved and implemented in near future for foreign investments.
The President of UIB had high hopes regarding prospects of productive collaboration, especially now that with the recent lifting of international sanctions on Iran by the global community, the latest development has witnessed Iran re-enter the global SWIFT banking system - Society for Worldwide
Interbank Financial Telecommunication- which will enable Iranian banks to conduct overseas financial transactions on the one hand, and to facilitate trading for foreign investors and international partners in the Iranian insurance market on the other hand.
More importantly, he underlined that sanctions in Iran has led to self-reliance and, subsequently, innovation in local production systems, proving Iran as a highly industrialized country. It was also mentioned that as for engineering resources, Iran is significantly qualified. Accordingly, Iran will hopefully observe its booming economy with a prospect of playing a positive role in the international scene.
The President of Nasco suggested organizing reinsurance training seminars inside or outside Iran, highlighting that Iranian young generation is replete with technical competence and true potentials which need to be realized to serve the industry in the most efficient way.
The Chief Executive Officer of SCOR Global P&C SE expressed willingness to collaborate in the field of reinsurance, particularly in the realm of oil and energy as well as catastrophic risks, especially due to the fact that, apart from other natural disasters, earthquake zones in Iran lead to heavy losses every year. In view of that, Reinsurance Vice President called for an appropriate international modeling system for premium rating and managing claims.
Commencement of Cooperation between Green Card Bureau of Iran & Compulsory Insurance Bureau of Azerbaijan
In the 49th General Assembly of the Council of Bureaux (CoB), on the 28th of May 2015 in Sopot, Poland, it was decided that the Bureau of Azerbaijan will be accepted as a transitional member with effect from January, 1, 2016 according to the Transitional Membership Financial Guarantee Criteria, and provided that the financial guarantees are in place by the 1st of November 2015, until its possible advancement to the status of a full member is agreed upon by the General Assembly. In CoB regional categorization of member bureaux of the system, the Bureau of Azerbaijan is assigned to the South-Eastern European Regional Group, along with the Green Card Bureau of Iran.
According to Public Relations & International Affairs General Department, following the formal application of Azerbaijan, the Green Card Bureau of the Islamic Republic of Iran in accordance with regulations, proceeded to conclude bilateral agreement with the Bureau of Azerbaijan on 14.12.2015.
Stimulated by the United Nations Economic Commission for Europe (UNECE), the Green Card System was founded in 1949 (on the basis of Recommendation No. 5 adopted by the Working Party on Road Transport of the Inland Transport Committee) in order to facilitate cross-border traffic.
The International Association of National Motor Insurers’ Bureaux - the Council of Bureaux (CoB) headquartered in Brussels, acts for the protection of cross-border road traffic victims by coordinating the activities of different National Motor Insurers’ Bureaux that are members of the Green Card System.
Basically, the main purpose of the system, commonly known as the Green Card System, is to facilitate the international circulation of motor vehicles by enabling insurance of third party liability risks in respect of their use to fulfill the criteria imposed by the visited country and, in the case of accidents, to guarantee compensation of injured parties in accordance with the national law and regulations of that country.
The international motor insurance card (Green Card), which is officially recognized by the government authorities of the States adopting the United Nations Recommendation, is proof in each visited country of compulsory civil liability insurance in respect of the use of the motor vehicle.
The Green Card system is primarily but not exclusively a European system. It presently includes most, but not all, European countries. All member states of the European Economic Area (EEA) participate in the Green Card System. Several countries in the Middle East and bordering the Mediterranean Sea also actively participate in the system.
TPL & Drivers’ Accident Online Info
It has been decided by Bimeh Markazi Iran (Central Insurance of IR Iran) to sustain IT application in Iranian insurance industry for the purpose of facilitating and reinforcing supervisory operations and procedures within insurance companies and Bimeh Markazi, through online information exchange and supervision, as far as third party liability insurance and drivers’ accident are concerned.
As a supervisory authority, Bimeh Markazi administer the project aiming at online information exchange in the field of TPL and drivers’ accident, content validation via information bank of Police and the National Organization for Civil Registration, online confirmation of underwriting operation, and assignment of particular codes to insurance products and services.
Accordingly, other large-scale targets such as available data analysis, prompt presentation of more precise prospect, insurance industry indices measurement and comparison with other industries, national insurance status assessment, insurers’ solvency evaluation, and methodical model usage based on valid data in order to plan for IT projects.
Advantages of this project entail qualitative improvement of insurance policy information, endorsement, loss profile, paid loss, contrast omission if exchanged information between Bimeh Markazi and insurance companies, transparency in underwriting procedure, IT usage facilitation in insurance industry including business intelligence, data mining, electronic services promotion, new IT-oriented services preparation, and the insured rights protection. The project shall be initiated in January 2016 and is expected to get finalized until the middle of next year.
More Foreigners Witness 22nd National, 8th Int’l Conference on Insurance & Development This year more than ever, the 22nd National and 8th International Conference of Insurance and Development, held on 5 December 2015 at Milad Tower International Conference Center, hosted foreign insurance and reinsurance professionals.
Minister: Hopes for VAT Removal
“Achievements in negotiations shall not only lead to the lifting of sanctions, but also pave the way for ever-increasing interactions and mutual cooperation among Iranian and foreign insurance and reinsurance companies,” asserted the Minister of Economic Affairs and Finance.
Ali Tayyebnia underlined that reinforcing insurance role in the national economy is expected to be a significant agenda in the Ministry of Economic Affairs and Finance, particularly in the field of oil, gas, and petrochemical industries in a short period. This is because of the fact that insurance is an irrefutable constituent in economic growth, i.e. mainly investments in the capital market and production, and nonetheless social welfare.
The Minister also pointed out that one of the confrontations of the Iranian industry is a transition from monopoly to competitive status. More to the point, attempts must be made for the removal of value-added tax in the insurance industry.
Head of Presidential Office: Time to Step Up
Dr. Nahavandian, the Head of Presidential Office and Chief of Staff affirmed the VAT Act must not be strictly implemented on insurance operations and at the same time attempts ought to be made to improve insurers’ solvency and create an atmosphere of healthy competition. He also accentuated that in the aftermath of sanctions, it is on the shoulder of professionals in the realm of economy to step forward with the intention of compensating for the past and advancing by means of tact.
Dr. Nahavandian expressed that, “Vividly enough, upgrading technical expertise and IT utilization are the keys to competitiveness in the market. During sanctions this meant upgrading human resources which would not suffice in the future. More importantly, relying on governmental support is against the principles of empowerment and enablement; therefore, promoting investment through private sector is of paramount importance. This does not denote the exclusion of state-owned companies, but in a sense, equal
opportunities in private sector. Transparency is undoubtedly a vital component for competition, in a way that private investors realize internal motivation and financial capacity. Easing laws and regulations along with diversification of insurance services in all insurance classes, life assurance in particular, must be taken into consideration as well. No competition sustains without prudent tact and strict supervision in order to control the degree of concentration and fair competition in the market both locally and overseas.”
President Amin: Solvency Margin, Key Benchmark to Assess Insurers
Dr. Mohammad Ebrahim Amin, the President of Bimeh Markazi Iran (Central Insurance of IR Iran), elaborated on the inevitability of solvency margin, as an important financial indicator and a key benchmark in order for evaluating financial strength and managerial competence of insurance companies; since solvency margin simply signifies the company’s risk-bearing capacity; in other words, to what extent financial obligations will be honored as promised. A broad range of topics elucidated by Dr. Amin are as follows;
“Currently speaking, capital is a substantial challenge in Iranian insurance industry, especially because the majority of insurance companies can hardly manage to absorb sufficient capital to provide coverage for all risks due to their low efficiency.
In view of that, one of the government’s approvals is determining minimum capital for the establishment of insurance companies which is now a setback owing to the lack of enthusiasm by shareholders and investors to increase capital.
Thus, a solution can be substituting solvency margin- as one of the financial metrics- for minimum capital that can be realized through an amendment in the relevant bylaw enabling the industry as well as the High Council of Insurance (HCI) to maintain a sound Report environment in the market. In this respect, it is highly significant for insurers to determine premium in such a way that enables them to meet all their obligations including claims and expenses. Another dilemma is the pervasive price war among insurers harming the market to a vast extent, which must be taken into consideration as far as managerial competence is concerned, since low solvency margin ratio indicates weak managerial determination.
Another issue, economically of great concern, is job creation and its impact respectively; hopefully, insurance industry is capable of immediate job creation throughout the country. Now that it is expected to witness the lifting of sanctions against Iran, national insurance industry must be prepared to play its crucial role in the realm of job creation.
More importantly, the other matter pertinent to financial strength and managerial competence is the formation of a unified beneficiary; in a sense, a shareholder, today, with no more than 20 percent of fixed shares- according to the Act of Establishment- indirectly administers the insurance company. In view of that, it is important to consider advantages and disadvantages of a unified beneficiary; as an illustration, coherent management and less disagreement in management board lead to less difficulty in providing capital, as the unified beneficiary is by and large a bank or an investment group. In addition, accountability is another benefit which enhances harmony between the supervisory body and the beneficiary at times of crisis management.
One should, however, note that a large number of beneficiaries establish insurance companies in order for financial resources; as a result, the probability of asset risks increases. Many insist on the appointment of non professionals in managerial positions. Many others make decisions that lead to more and more risks. Hence, the formation of companies in conjunction with the price war shall no longer be taken for granted.
As for the post-sanction era, although one cannot deny the importance of foreign investment, it is currently not top priority as the trace of investments has not been mapped out by foreigners yet. Nevertheless, as for assisting the insured interested in foreign markets that interacted directly before sanctions,
particularly those operating in the field of oil, gas, energy, aviation, and marine, and received insurance coverage from domestic companies, one can agree up to a certain point that measures by the board of ministers must be aimed at domestic insurers to transfer risks in line with the parameters of the international markets, otherwise the present trend would be in vain, despite all managerial invaluable experiences gained throughout sanctions and entities composed as pools and consortiums for crisis management.
Another vital component that Iranian insurance industry highly demands in the post-sanction era relates to core insurance systems without any limitations that are globally proven to be appropriate for Iranian insurance market.
Besides, it is a sad fact that Iranian experts and professionals have been almost deprived of professional training for which there should be internationally creditable certificates for the purpose of assessing top executives’ qualifications and updated expertise, apart from their educational and academic background.
Rating insurance and reinsurance companies is yet another concern in the national industry. Human resources, capital, procedures, and methods of administration in every company contribute to its rating. Because of that, rating is fundamentally essential for all domestic companies in order for the market to enjoy specific parameters to the benefit of clients.
It is remarkably advisable for national companies not to regard themselves as the one that only buys (re)insurance services and products, rather as both suppliers/demander at times of interacting with international counterparts, so that competence and resourcefulness created and enhanced during sanctions shall not be degraded.
Ultimately, it is hoped that national market witnesses appropriate solvency margin ratio based on researches
and technical calculations conducted by Insurance Research Center (IRC); in the meantime, High Council of Insurance shall accomplish its goals concerning amendments to Bylaw 69 to establish a well-defined criteria in the community.”
Father of Solvency II, Keynote Speaker
As the keynote speaker, Professor Karel Van Hulle, who lectures at the Business and Economics Faculty of the KU Leuven and at the Economics Faculty of the Goethe University in Frankfurt, explained his views and attitudes on solvency.
Management competency is not just a question of technical know-how but also of proper governance of the institution. Insurance failures are often the result of poor governance more than of a lack of capital.
Regulating good governance is difficult and needs to be mirrored by good governance of supervisory authorities. Governance requirements are an essential feature of recently adopted solvency regimes, such as Solvency II. Under Solvency II, there are 4 key functions: risk management, internal control, internal audit and actuarial. All members of the Board and all persons in charge of a key function must be fit and proper. Of particular relevance in the governance structure of insurance companies is the risk management function. In order for markets to be able to rely on insurance contracts, they must have confidence in the risk management competencies of insurers.
& cross-sectoral convergence
Groups are recognised as an economic entity
=> supervision on a consolidated basis
(diversification benefits, group risks)
Pillar 1: quantitative requirements
1. Harmonised calculation of technical provisions
2. “Prudent person” approach to investments instead of current
3. Two capital
Requirement (SCR) and the Minimum Capital
Pillar 2: qualitative
1. Enhanced governance, internal control, risk management and own risk and solvency assessment (ORSA)
supervisory review, harmonised supervisory standards and practices
Pillar 3: prudential reporting and public disclosure
1. Common supervisory reporting
2. Public disclosure of the financial condition and solvency report
(market discipline through transparency)
Investment Opportunities Roundtable
A roundtable on the topic of investment opportunities was held at Milad Tower Conference Center where
several international and local companies participated. Dr. Behkish, Head of Iran Chamber of Commerce, lectured about sanctions in Iran with opposing
outcomes, i.e. strong management in operational fields as one of its major positive results; Hammam Badr, FAIR Ex-Secretary General, had presentation on technical knowledge that is more felt than capital for the Iranian market; Hassan Nasser, representing NASCO, reasoned that Iranian insurance market is a source of premium amounting USD 7.6 billion, and that the low penetration coefficient is a unique driver to enter the market; George Kabban, UIB CEO, expressed optimism as for the willingness of countries to make deals with Iran, as it is the best time to transfer its risks to such countries. Mahomed Akoob, Hannover Re Takaful Managing Director, elaborated on enormous reinsurance opportunities in the field of oil and gas in Iran. Issues discussed during the panel are as follows;
• The present bylaw No. 69 bears strengths and flaws that are quite apparent. Papers submitted have properly dealt with the issues associated with bylaw No. 69. Bimeh Markazi and Insurance Research Center are quite aware of major shortcomings of this bylaw as well. Some of the associated deficits pertain to operational risk, assessment methods of assets and liabilities, and liquidity risks. Risk coefficients must be updated by using new data. After imposing necessary changes made to the bylaw, rating companies must be based on solvency.
• Concerning solvency, the emphasis must not be solely placed on capital. It is possible that managers propose higher increase in capital but investors are not willing which is why the process of increasing capital takes longer time to be effective. Hence, promoting solvency is neglected under duress.
• Time frame to control and report solvency is diverse among companies. Weaker companies must be controlled in shorter terms.
• Capital requirement is one of the pillars of solvency; the other two pillars are corporate governance and market discipline.
• Bimeh Markazi and Insurance Research Center intend to bid the strategies and proposals raised in the conference in the form of bylaw to the High Council of Insurance for further reformation and decision-
making. The outcomes of the conference panels will be reflected in such proposals.
• Insurance Research Center shall submit the final results of its study regarding bylaw No. 69 to Bimeh Markazi and High Council of Insurance as it will add the viewpoints presented in the conference to the original study as a complement.
Engineering Insurance Seminar
RFIB, in collaboration with Starstone, a member of the Enstar Group, gave a presentation to the Iranian insurance community, on Monday 8 February 2016, at the Insurance Research Centre (IRC).
Anthony Harris, Head of RFIB Middle East, based in Dubai, and his colleague, James Cooke, an energy and construction broker at RFIB Middle East, introduced Tom Wylie, the Head of Construction Underwriting at Starstone based in London. Soran Seyedi, from RFIB Head Office in London assisted the presentation with interpretation and further explanation.
Following a similar event, November 2015, on the subject of RFIB marine products and latest developments in the international marine market, this seminar discussed recent innovations in the on-shore engineering and construction underwriting industry. Tom Wylie described how the Lloyd’s market operates, drawing on his nearly 40 years of construction insurance experience. James Cooke gave complementary examples from his work as a broker in both London and Dubai.
Tom Wylie began with a review of the way construction insurance currently operates, including a reference to the various professional associations which underpin the working of the market. Subsequently, he described some of the technical aspects of construction underwriting, such as that of owners, contractors, and legal liabilities, OCIP (Owners’ Controlled Insurance Programmes) and DSU (Delayed Start-up insurance). Having dealt with several detailed questions, Anthony Harris ultimately thanked Bimeh Markazi for the efficient way of organizing the seminar.
BONDING & REBONDING
Echo Reinsurance Co.
In his letter to the Reinsurance Vice President of Bimeh Markazi Iran (Central Insurance of IR Iran), the Chief Executive Officer of Echo Reinsurance Ltd. expressed enthusiasm regarding the company delegates’ plan to visit the Iranian insurance industry for the purpose of discussing mutual interest for the placement of reinsurance in due course.
This is the consequence of a new ordinance released by the Swiss Federal Council, announcing that Switzerland’s sanctions against the Islamic Republic of Iran had been immediately and to a large extent lifted including insurance and reinsurance activities, all coming into effect since 17th January 2016.
Thomas Cooper LLP
In a recent meeting with the Director General of Marine, Hull, and Aviation Reinsurance of Bimeh Markazi Iran (Central Insurance of IR Iran) in mid January 2016, a partner from Thomas Cooper expressed willingness for upcoming cooperation and collaboration.
The focal point of their discussion revolved around business interruption insurance and crucial role of loss adjustors concerning general average in Iran.
Concerning post-sanctions era, issues were discussed as for the prospects of upward trend in import and export as well as transportation industry, contributing to the improvement of national portfolio. It was also decided that a training seminar shall be organized in near future on the subject of marine insurance.
The firm Thomas Cooper LLP is an international law firm specializing in maritime, trade and finance law, with offices located in key jurisdictions around the world including London, Madrid, Piraeus, Paris, São Paulo, and Singapore. Its clients operate globally and range from ship owners to charterers and traders, from banks and other financial institutions to underwriters and P&I clubs, from blue chip companies to small businesses and private individuals.
Early December 2015, the Reinsurance Vice President of Bimeh Markazi, the Director General of Fire, Engineering & Energy Reinsurance, and the Director General of Reinsurance Accounts & Reserves had negotiations with a Senior Underwriter of Allianz SE for the purpose of information exchange and renewal of reinsurance transactions.
On 13 October 2006, the cross-border merger of the Italian Riunione Adriatica di Sicurtà (RAS) S.p.A into the German Allianz AG and the conversion of Allianz AG into a European company (SE) made it the first European company in the DJ EURO STOXX 50 listed as a stock corporation under European law. RAS, encompassing an executive management board as well as a supervisory management board, provides
reinsurance coverage to more than 70 countries worldwide, on behalf of its parent company, Allianz in German.
The Group holds an “AA” rating from Standard and Poor’s, with total direct insurance premium of 122 billion Euros, net operating profit of 10 billion Euros, and 94.3 percent combined ratio, all of which pertain to the parent company Allianz, Germany, 2015.
It was suggested that Allianz SE hold a training seminar on financial and fiscal fields or any other related issues practical for Iranian insurance market. Besides, new round of cooperation in the realm of catastrophe reinsurance contracts shall be investigated after the lifting of sanctions.
FAIR Insurance and Reinsurance Brokers
Early December 2015, top executives of Marine, Hull, and Aviation Reinsurance General Department met a delegate from FAIR Insurance and Reinsurance Brokers in order to assess the competence of the mentioned company to get quote in all classes, aviation in particular. The Moroccan company has offices registered in London, Dubai, Istanbul, India, and Malaysia. A summary of the company operations and performance over the last three years was asked to be sent to Bimeh Markazi in order for perusal.
Late November 2015, a meeting was held with the presence of Technical Affairs Director General together with
Personal, Motor & Liability Reinsurance Director General of Bimeh Markazi, and top executives of Munich Re.
Introducing life insurance and procedures of claim management in the Iranian market were the aim of the meeting in view of the fact that Munich Re would serve Iranian insurance industry in the realm of reinsurance in future.
Munich Re’s internet-based underwriting tool MIRA (Munich Re Internet Risk Assessor) is a high-performance integrated solution that fits into workflow, giving clients instant access to a vast and continuously evolving pool of rating recommendations as well as interactive support from Munich Re underwriting experts – and enables them to process and store the resulting documentation in their own data infrastructure.
Moreover, a Seminar on Life Underwriting and Claims was held on 23 Nov. 2015 at Insurance Research Center (IRC) for experts from Bimeh Markazi and local insurance companies in order to introduce latest global trends in this field.
In a meeting with Mrs. Mina Sadigh Noohi, the Reinsurance Vice President of Bimeh Markazi (Central Insurance of IR Iran) in mid November 2015, Mr. Dimitris Tsesmetzoglou, MATRIX CEO, along with two other colleagues expressed their attitudes on the prospects of cooperation through organizing training seminars and establishing contact office, in case necessary, after negotiations with Iranian insurers.
MATRIX, a registered broker at Lloyd’s since September 2012, was established in 2007 in order to build worldwide reinsurer relationships, while maintaining small business service.
MATRIX produced premium in 2013 was EUR 441 million, 79 percent of which pertained to non-compulsory insurance coverage for financial institutions i.e. banks, 9 percent related to liabilities including cyber risks, and the remaining 12 percent referred to property, engineering, and marine.
Daman Health Insurance
In a meeting with Mr. Hamid Reza Navabi, the Director General of Personal, Motor & Liability Reinsurance of Bimeh
Markazi, early November 2015, top executives of Daman-Munich
Health Insurance presented an overview of UAE health insurance market comprised of national scheme, basic insurance, and private insurance.
An outline of Iranian health insurance market was provided in return in order to analyze the conditions for prospective cooperation.
Daman Health Insurance, a joint venture between National Health Insurance Company (Daman) and Munich Health, is Qatar’s only specialist health insurer offering private medical insurance
products and services to enterprises, corporate and governmental customers in Qatar.
Established in July 2011, Daman Health Insurance Qatar is registered with the Qatar Financial Centre and headquartered in Doha.
Establishing insurance company or agency with foreign assets in free trade zones, operating as a third-party administrator (TPA), signing reinsurance contracts with Iranian insurers, and providing medical emergency services in the field of travel health insurance were among the outcomes of this meeting.
RFIB & Thomas Cooper
In a meeting with Mrs. Mina Noohi, the Reinsurance Vice President of Bimeh Markazi and her colleagues with Thomas Cooper and RFIB top executives in mid November 2015, both entities expressed their readiness to cooperate with Bimeh Markazi and Iranian Insurance Market in the post-sanction era. Besides, issues pertinent to marine and hull insurance also, other types of property insurance were discussed.
Thomas Cooper LLP, an international law firm specializing in maritime, trade and finance law with offices located in key jurisdictions around the world including London, Madrid, Piraeus, Paris, São Paulo and Singapore, was initially established in 1825.
RFIB Group Limited was founded in 1980 as an independent international insurance and reinsurance broker with headquarters in the heart of London’s insurance sector and as the mid-sized Lloyd’s broker authorized and regulated by the Financial Conduct Authority.
Korea P&I Club
In a meeting with the Reinsurance Vice President and the Director General of Marine, Hull, and Aviation
Reinsurance of Bimeh Markazi in late November 2015, a sense of willingness was expressed by Korea P&I Club Chief Operating Officer for mutual collaboration in the field of P&I insurance coverage with Kish P&I Club.
Korea P&I Club was established in South Korea in 2000 by Korean Ship-owners, as a non-profit making organization in accordance with the Ship-owners’ Mutual Protection and Indemnity Association Act 1999.
MAPFRE – MAPFRE ASSISTENCIA
In a meeting with Mr. Hamid Reza Navabi, Personal, Motor & Liability Reinsurance Director General of Bimeh Markazi (Central Insurance of IR Iran), MAPFRE top executives aimed at exploring conditions in order for new contracts following post-sanction phase.
They are particularly interested in travel medical reinsurance which is feasible since Bimeh Markazi is currently mobilized with online information direct transfer system among reinsurer, direct insurer, and Bimeh Markazi.
MAPFRE is an independent Spanish business group dealing in insurance, reinsurance, finance, real estate and services. It began as a mutual organization created in 1933 by the Spanish Rural Estate Owners’ Association (Agrupación de Propietarios de Fincas Rústicas de España).
MAPFRE occupies a considerable position of leadership in the Spanish insurance industry and has a significant international presence in direct insurance,
reinsurance and assistance. The Group occupies the eighth place in non-life European ranking and the first place in Latin American tables. Its market is focused mainly in Spain, Europe and Latin America.
Furthermore, the Group has presence in the USA, Turkey and the UK with fast growth in global performance, with workforce of 34,603 employees, (16,838 in Spain and 16,091 in America and 1,674 in other countries), and product range that covers all fields of insurance business.
MAPFRE ASSISTENCIA is a multinational insurance,
reinsurance and services company founded in Madrid (Spain) in 1989, which today operates in Europe, America, Asia, Africa and in the UK as MAPFRE ASSISTANCE.
MAPFRE ASSISTANCE works in partnership with many of the UK’s leading financial institutions, insurance companies, brokers, travel operators and airlines. As for emergency services, MAPFRE ASSISTANCE holds the global ranking of three. As international leaders in Assistance and Specialty Risks, the Group offers its clients integral solutions in four business sectors; motor, home, health, and travel.
IRR 80.8 Thousand Bln Paid Losses in Months
Iranian insurance industry witnessed produced premium of 149 thousand billion Rials and paid losses of IRR 80.8 thousand billion during eight months of the current year, representing an increase of 22.7 percent.
According to Statistical Analysis Department, the share of non-governmental sector in produced premium reached 57.4 percent, whereas Iran Insurance Company, the only state-owned insurer, registered produced premium of 42.6 percent.
Iran, Asia, Alborz, Dana, Parsian, Moallem, Kosar, Pasargad, and Karafarin, each holding above 3-percent share, contributed to 85 percent of the market produced premium. Specifically, 35 percent of produced premium relates to TPL and surplus, 29.4 percent pertains to health, and the share of life and motor (PD) registered 10.7 and 5.4 percent respectively. During this phase, 31.2 million issued policies indicated 9 percent growth over the same period last year.
Based on the statistical report, Iranian insurers paid for 15.7 million loss claims, indicating 34.6 percent increase over the same period last year. 40 percent of such paid loss concerned TPL and surplus, 33.7 percent for health, life and motor (PD) about 6.6 percent, each. During this phase, the market loss ratio was approximately 54.3 percent signifying 4.5-unit increase compared with last year.
The loss ratios of nine insurers, namely Kish P&I, Novin, Mellat, Sina, Dana, Mihan, Asia, Iran, and Parsian, were above market loss ratio, i.e. 1002.6, 89.1, 83.7, 74.5, 67.5, 63.5, 57.7, 57.2, and 55.6 percent respectively.
Four insurance classes including credit, motor (PD), health, TPL and surplus registered loss ratios above the market ratio, that is, 439.7, 66.9, 62.2, and 61.9 percent respectively.
Subsequently, liability and driver’s accident registered 50.5 and 2.47 percent, implying higher than this ratio in other classes, yet lower compared with market loss ratio.
Marine Paid Loss Rises by 87.17%
in 1393 (2014/15)
Iranian insurance industry paid loss of IRR 475.6 billion to the insured, in the field of marine insurance which mirrored an increase of 87.17 percent compared with the previous year.
According to Safety and Loss Prevention, marine produced premium in 1393 (2014/15) decreased by 15.25 percent whereas its paid loss rose by 87.17 percent. Annual statistics reveals that insurance companies issued 250,226 marine insurance policies, 71 of these encompassed loss of more than one billion Rials and the total accumulated losses mounted to 286 billion Rials. Other 23 insurance policies added more than three billion Rials, making total paid loss of 208.5 billion Rials.
Iranian Insurance Industry & Marine Paid Loss in 5 Years
In Billion Rials
In Billion Rials
No. of Policies
No. of Loss Claims